price was upward during last week in Iran domestic market from USD 566/mt to
USD 598/mt ex-work including 9% VAT. The reason was higher ex-rate and empty
warehouses of re-rollers.
Rebar market also experienced upward trend from
USD 655/mt to USD 668/mt ex-work including VAT by end of the week. Higher
currency rate and empty warehouses of traders and mills was again the reason
behind this upward trend.
Optimistic sentiment of the market made I-beam
price also upward from USD 675/mt to USD 690/mt ex-work including VAT.
Price of 2 mm thickness HRC was USD 1076/mt ex-work Mobarakeh on last Saturday,
which reached USD 1124 /mt by Tuesday. Mill’s controlling the market, along
with Isfahan fair, which had taken traders out of their offices, made HRC price
up, but demand level was not very interesting.
Oxin co HRP supply level has improved while demand level has not changed. Therefore
average price dropped from USD 1179/mt to USD 1154/mt, but traders were resisting
against falling prices. Market average price has reached the bottom as is near
purchase prices of three months ago.
Kavian co HRP price was almost stable at USD 1109/mt due to mill’s control
but Oxin co price trend would affect it soon.
CRC market experienced upward trend from USD 1232/mt to USD 1261/mt ex-work
including VAT as ex-rate improved and traders stayed back.
HDG market was almost stable and improvement in price of some sizes made
average price up by USD 26/mt to USD 1281/mt ex-work including 9% VAT.
Several factor are affecting market trend
First, the exchange
rate, which is the basis of export prices and does not seem to fall below Rials
270,000/USD in free market.
The second factor is
demand, which is currently in shortage due to Holidays, and has disrupted
At present, most re-rollers
do not have enough raw material stock in their warehouses as they hoped prices
would decline, and avoided purchasing raw materials. This led to an increase in
price of long products. In the coming week, these mills will seek to buy billet
to fulfill their obligations, which will make prices upward. Eventually, the
market will be balanced within two weeks.
Flat products market
has been facing the same trend. Religious Mourning Holidays besides some Steel
Fairs in Isfahan and Istanbul has declined supply level as market participants
were out of their work. Besides, government's policy of regular and wide spread
supply does not allow prices change much, especially as global steel market
trend is also declining. On the other hand, power cuts issue in China is serious
and this will affect our export level. But possible gas supply problem may have
negative effect in this regard on our export market.
Due to the limited scrap
supply, cutting gas supply will disrupt DRI supply, which will naturally affect
raw material market seriously. There are ups and downs ahead, but the government
is trying to help the market through Stock Exchange market.
CBI weekly average
ex-rate for Steel Products (SANA): Rials 231,381 USD
04 Oct 2021
Iran Steel News